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Shiba Inu (SHIB), the dog-themed meme coin, has triggered its deflationary mechanism in the past 24 hours. SHIB registered a mild burn in a notable move ahead of its 2024 exit from the stage. The project saw over 1.7 million SHIB tokens taken out of circulation.
The impact of the burning mechanism on SHIB price stability
Data From Shibburn, an online platform that tracks burning activity on the Shiba Inu network, reveals that the burning rate has risen by 243.34% in the past 24 hours. Specifically, 1,717,872 SHIB tokens were sent to dead wallets.
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The Shiba Inu, famous for its daily burning activity, uses this mechanism to control the circulating supply of its tokens. This contraction action helps Maintaining price stability and slow down the depreciation of prices. Hence, the 243.34% increase in burn rate is significant, as it helps achieve these goals.
Surprisingly, on average, SHIB is still down 2.76% and trading at $0.00002109, According to Data from CoinMarketCap. Meanwhile, market volume rose by a whopping 31.11% to $538.36 million, as market participants engaged in the latest trading bout on the last day of the year.
However, a close analysis of SHIB's price movement shows that the meme coin was in free fall and fell to a low of $0.00002054. It is likely that the burning mechanism helped stabilize it and supported its recovery to its current levels.
Can SHIB rediscover the new price in 2025?
In the past 30 days, SHIB experienced fluctuations to regain its price of $0.00003016. Despite the bull cycle, the Shiba Inu's December performance fell below investors' expectations in the broader cryptocurrency space.
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Analysts point out that for SHIB to re-experience high prices in 2025, the community must engage more developers and launch new projects to boost participation.
like I mentioned By U.Today Chitoshi Kusama, the enigmatic leader of the Shiba Inu, has pledged an exciting year for 2025, with bullish plans for the ecosystem. According to Kusama, 2025 will be epic.
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